Legal & General (LGEN) AI Stock Analysis

• Market Cap: £13.44B
• Dividend Yield: 9.03%
• Average Volume (3M): 17.58M
• Price to Earnings (P/E): 60.0
• Beta (1Y): 1.24
• Revenue Growth: -38.98%
• EPS Growth: -31.14%
• Country: UK
• Employees: 10,799
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.10
• Shares Outstanding: 5,696,706,000
• 10 Day Avg. Volume: 14,687,427
• 30 Day Avg. Volume: 17,579,726
• PEG Ratio: -1.17
• Price to Book (P/B): 3.81
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -2.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £258.86
• Price Target Upside: 8.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 50 Neutral
• Price Target: 239.00p ▲(0.42% Upside)

Legal & General's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability, and liquidity issues. The technical analysis indicates a neutral to slightly bearish trend, while the valuation suggests potential overvaluation despite a high dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Business Model Diversification

Diversified revenue streams from insurance, asset management, and pensions provide resilience against sector-specific downturns, supporting long-term stability.

Commitment to Sustainability

A strong focus on sustainability can enhance brand reputation and attract ESG-conscious investors, potentially leading to long-term growth opportunities.

Stable Debt-to-Equity Ratio

A stable debt-to-equity ratio suggests manageable leverage, which can provide financial flexibility and reduce risk in volatile markets.

Negative Factors

Declining Revenue and Profitability

Decreasing revenues and profitability indicate potential issues in maintaining competitive advantage and market share, impacting long-term growth.

Negative Free Cash Flow

Negative free cash flow suggests liquidity challenges, which can hinder the company's ability to invest in growth opportunities and meet financial obligations.

High Financial Leverage

High leverage increases financial risk, particularly in economic downturns, potentially affecting the company's ability to sustain operations and growth.

Legal & General Business Overview & Revenue Model

Company Description

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in four segments: Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Legal & General Insurance (LGI). The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets. The LGC segment provides investment strategy and implementation, and direct investment and structuring services. The LGI segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; and annuities. It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses. In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Legal & General generates revenue through multiple streams. Its primary revenue sources include premiums from life insurance policies, management fees from its asset management division, and income from pension fund investments. The company earns premiums by underwriting various insurance products, which provide financial protection for policyholders. Additionally, it collects management fees for overseeing investments in equities, bonds, and real estate, contributing to its financial performance. Legal & General also benefits from partnerships with financial advisors and intermediaries, which enhance its distribution channels for insurance and investment products. Factors such as demographic trends, economic conditions, and regulatory changes also significantly influence its revenue streams.

Legal & General Financial Statement Overview

Summary

Legal & General faces challenges with declining revenues and profitability, reflected in low margins and fluctuating income. The balance sheet showcases a heavily leveraged position, which could pose risks if asset values decline. Cash flow issues, with negative free cash flow in recent years, raise concerns about liquidity and operational efficiency. Overall, the company needs to address these financial weaknesses to ensure stability and growth.

Income Statement

Legal & General has seen significant revenue fluctuations, with a decline from 2020 to 2024, indicating instability in revenue streams. The net profit margin has been low and declining, with a sharp decrease in net income from 2023 to 2024. The absence of EBIT and EBITDA margins in 2024 is concerning and suggests potential operational challenges.

Balance Sheet

The balance sheet shows a decreasing stockholders' equity from 2019 to 2024, which raises concerns about the company's financial leverage. However, the debt-to-equity ratio remains relatively stable, and the equity ratio indicates a small but consistent portion of equity in the asset base. The high level of total assets compared to equity suggests potential risk due to high leverage.

Cash Flow

The cash flow statement highlights negative free cash flow in recent years, particularly a significant drop in 2023 and 2024. This points to potential liquidity issues. The operating cash flow has also been negative in several years, indicating challenges in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.78B	12.96B	11.07B	10.19B	9.29B	9.28B
Gross Profit	5.68B	12.59B	10.72B	9.90B	8.99B	8.98B
EBITDA	845.00M	704.00M	423.00M	1.26B	2.92B	1.50B
Net Income	116.00M	191.00M	457.00M	783.00M	2.05B	1.61B
Balance Sheet
Total Assets	557.02B	544.17B	522.10B	506.32B	575.46B	563.63B
Cash, Cash Equivalents and Short-Term Investments	0.00	18.58B	22.54B	36.26B	16.49B	43.29B
Total Debt	4.71B	7.70B	6.12B	5.48B	5.39B	5.84B
Total Liabilities	554.60B	540.66B	517.31B	494.18B	564.51B	553.66B
Stockholders Equity	2.41B	3.55B	4.83B	5.56B	10.98B	10.00B
Cash Flow
Free Cash Flow	-1.22B	-4.54B	-14.48B	20.28B	-374.00M	4.14B
Operating Cash Flow	-1.13B	-4.45B	-14.24B	20.46B	-169.00M	4.30B
Investing Cash Flow	285.00M	239.00M	-422.00M	-226.00M	133.00M	-457.00M
Financing Cash Flow	-1.35B	331.00M	-556.00M	-1.03B	-1.50B	-29.00M

Legal & General Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 238.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LGEN, the sentiment is Neutral. The current price of 238 is above the 20-day moving average (MA) of 237.22, below the 50-day MA of 245.64, and above the 200-day MA of 231.84, indicating a neutral trend. The MACD of -2.12 indicates Negative momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 51.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:LGEN.

Legal & General Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMG	76 Outperform	£2.00B	14.37	17.78%	7.24%	-10.85%	-42.02%
SDR	74 Outperform	£5.81B	16.36	9.82%	5.72%	4.78%	―
ABDN	71 Outperform	£3.46B	10.92	4.71%	7.39%	-7.11%	0.45%
ICG	67 Neutral	£6.32B	14.23	―	3.73%	-0.15%	-7.47%
MNG	54 Neutral	£5.96B	-102.85	-10.97%	7.98%	9.86%	-134.41%
LGEN	50 Neutral	£13.44B	60.00	6.81%	9.03%	-38.98%	-31.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Legal & General Corporate Events

Legal & General Completes Tender Offer for Subordinated Notes

Legal & General Group Plc announced the final results of its tender offer for £600,000,000 Fixed Rate Reset Subordinated Notes due 2064. The company accepted £587,295,000 in aggregate nominal amount of the Notes without any scaling, and intends to cancel all purchased Notes, leaving £12,705,000 outstanding. This move is part of Legal & General’s strategic financial management, potentially impacting its capital structure and stakeholder interests.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £227.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Legal & General Executives Acquire Shares Under Employee Plan

Legal & General Group Plc announced the purchase of shares by several key executives under the company’s Employee Share Plan. This transaction, conducted on the London Stock Exchange, reflects the executives’ confidence in the company’s future performance and aligns their interests with those of shareholders.

The most recent analyst rating on (GB:LGEN) stock is a Sell with a £200.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Legal & General Executes Share Buyback, Cancelling 5.9 Million Shares

Legal & General Group Plc announced the repurchase and cancellation of 5,948,320 ordinary shares as part of its ongoing share buyback program initiated in March 2025. This transaction, executed through Barclays Capital Securities Limited, reduces the total number of shares in issue to 5,696,705,949, potentially enhancing shareholder value by decreasing the number of shares available in the market.

The most recent analyst rating on (GB:LGEN) stock is a Sell with a £200.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Legal & General Issues €700 Million Subordinated Notes to Strengthen Capital Structure

Legal & General Group Plc has announced the issuance of €700 million Fixed to Floating Rate Subordinated Notes due in 2055, as part of its £5 billion Euro Note Programme. This strategic move is expected to enhance the company’s capital structure and provide additional financial flexibility, potentially impacting its market positioning and offering new opportunities for stakeholders.

The most recent analyst rating on (GB:LGEN) stock is a Sell with a £200.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Legal & General Directors Purchase Shares, Signaling Confidence

Legal & General Group Plc has announced the purchase of ordinary shares by three of its Non-Executive Directors, Mark Jordy, Ric Lewis, and Laura Wade-Gery, under their Terms of Appointment. This transaction, conducted on the London Stock Exchange, reflects the directors’ commitment to the company and may influence stakeholder confidence in the firm’s governance and future prospects.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Legal & General Updates Total Voting Rights After Share Cancellation

Legal & General Group Plc announced the total voting rights as of August 29, 2025, with the company’s capital consisting of 5,706,036,779 ordinary shares, all with voting rights. The company recently purchased and cancelled 2,486,292 shares, reducing the total number of ordinary shares and voting rights to 5,703,550,487. This update is crucial for shareholders to determine their notification requirements under FCA rules.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Legal & General Executes Share Buyback of 1 Million Shares

Legal & General Group Plc has repurchased 1,000,000 of its ordinary shares as part of its ongoing share buyback program, which was announced in March 2025. This transaction, executed through Barclays Capital Securities Limited, will reduce the total number of shares in issue to 5,702,550,487, potentially enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Legal & General Chair Purchases Shares, Signaling Confidence

Legal & General Group Plc announced a transaction involving Sir John Kingman, the Chair, who purchased ordinary shares into an ISA. This transaction, conducted on the London Stock Exchange, highlights the ongoing engagement of key company figures in the financial markets, potentially reinforcing investor confidence and demonstrating commitment to the company’s growth and stability.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.